Prices remained largely stable in the domestics market and only slightly less stable in the international market for LPG in the immediately preceding week .

Key developments in Nigeria's LPG Market
International prices of LPG initially plummeted and then started to rise towards the end of the week under review. Notwithstanding, prices remained largely stable.
We find only a slight rise in depot price in response to the rise in prices internationally which only began to be evident towards the end of the week.
Prices per kg of LPG at the depots in Nigeria were well over double the prices at the international market.
Regional disparities in the retail prices of LPG within the country continue to persist.

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Regional Disparity in Retail Prices
Regional disparity in the prices of LPG across the country has been a regular feature of the Nigerian LPG market. Though the South-south geopolitical zone hosts the great majority of depots in the country due to its proximity to the ocean, prices have been highest in the region.

Macroeconomic Conditions & the LPG Market
The stability in the exchange value of the naira to the US. $ was reflected in the stability of LPG prices domestically throughout the week (Figure D).
The gross foreign reserves of Nigeria is continuing a downward trend. It dropped by 0.40% through the week.
As noted last wee, the composite Purchasing Managers’ Index (PMI) for the month March 2020 stood at 49.2 points, indicating contraction in Non-manufacturing PMI for the first time after thirty-four consecutive months of expansion.
For the gas market, managers report declining inventory, new orders and employment.
The price Of oil in the international market (Figure E).

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Outlook : coming weeks
Price of LPG in the domestic market may rise in response to recent rises in international prices.
We expect a continuous stabilization of the exchange value of the naira as market players adjuster to the new rates.